Concise Reporting and Lessons Learned

Paula Folkes-Dallaire, A/Principal Analyst Parliamentary Reporting and Accountability Division Results Based Management Directorate Expenditure Management Sector Treasury Board Secretariat November 2008

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Current Context of Public Reporting

• • • • Improved reporting to Parliament has been identified as an area of concern for Parliamentarians and the Auditor General. Improved reporting is one of the key elements of enhancing government transparency and accountability, and is one of the pillars of the Expenditure Management System renewal.

Addressing concerns over departmental reporting burden is a priority for the Treasury Board Secretariat.

The Treasury Board Secretariat has developed a vision to improve whole-of-government and departmental reports that better support Parliamentarians in their consideration of the Main Estimates.

A major challenge in moving forward on improving public reporting is the tension between Parliamentarians’ requirement for more information and the drive to produce more concise and readable reports.

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Layered Reporting allows a continuous “drill down” from

Slide on Layered approach

Economic Affairs Social Affairs International Affairs Government Affairs Spending Areas (4)

Whole-of Government – Layer

Aggregate information on Spending and on Plans and Performance in: • Whole-of-Government Overview for RPPs • Canada’s Performance Healthy Canadians Safe and Secure Communities Diverse Society Canadian Culture/Heritage Government of Canada Outcome areas (13)

Citizenship and Immigration RPP Departmental – Layer

High-level departmental information on: • Spending, Planning and Performance Indicators • in concise RPPs and DPRs (30 pages or less) Maximum Contribution to the Economy… Integration Program Successful Integration of Newcomers… Reflection of Canadian Values… Citizenship Program SOs PAs

Electronic – Layer

Detailed information on specific programs and policies Links to databases and useful policy documents SA SSA Expected and actual results Expected and actual resources Indicators and targets • Supplementary information (i.e. sustainable development strategies, audits and evaluations) Comprehensive, Layered, Continuous: User is able to continuously drill down from the Whole of Government level to detailed financial and non-financial information at the lowest level of the PAA 3

Overview of the Three-year Plan

Phase III: Full Implementation of Concise RPPs and DPRs Phase I: Working with Departments Activity / Output

• Enhanced Guidelines released • Share good practices with Departments • Create process for formal approval of content of reports

Phase II: Piloting Concise RPPs and DPRs Activity / Output

• Pilot concise RPPs and DPRs with 4-6 departments • E-requirements determined • Inform parliamentarians of change in structure

Result

• Printed copy of 07-08 DPR slightly shorter • Improvements in RPPs/DPRs as seen in DPR assessments

Activity / Output

• First full roll out of Future State • Promote new Structure with Parliamentarians

Result

• Better understanding of future state -- of issues for producers and users • 08-09 RPP slightly shorter • Continual improvements to reports shown through assessments

Result

• Reporting regime closer to the ideal or vision – 09-10 RPPs and 08-09 DPRs • Continual improvements to reports shown through assessments

2007 2008 2009

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Concise RPP Pilot Project

• • • In September 2007, the Treasury Board Secretariat worked with four departments to pilot test a concise RPP: – Atlantic Canada Opportunities Agency (ACOA) – Indian Northern Affairs Canada (INAC) – Parks Canada Agency (PCA) – Treasury Board Secretariat (TBS) The concise RPP mock-up: – Was based on recognized public reporting principles; – Focused on expected results and planned resources for strategic outcomes and program activities; – Emphasized the need for less verbiage, and more performance measures and graphs; and – Encouraged the use of hyperlinks to provide additional details.

Concise RPPs were tabled in Parliament on March 31, 2008 5

Concise DPR Pilot Project

• • In April 2008, the Treasury Board Secretariat worked with eight departments to pilot test a concise DPR: – Atlantic Canada Opportunities Agency (ACOA) – Canada Economic Development Agency for the Quebec Region (CEDQ) – Fisheries and Oceans (DFO) – Industry Canada (IC) – Indian Northern Affairs Canada (INAC) – Public Health Agency of Canada (PHAC) – Public Service Commission (PSC) – Treasury Board Secretariat (TBS) These concise DPRs were originally scheduled to be tabled in Parliament on October 23 rd , 2008, but due to the recent election will now be tabled during the next sitting of Parliament in 2009.

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Concise RPP – Expenditure Profile

Spending Trend Actual Spending

$500 $450 $400 $350 $300 $250 $200 2006-07 2007-08 2008-09

Forecast Spending

2009-10 2010-11

Planned Spending

2011-12 2012-13 7

Concise DPR – Financial Highlights

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RPP & DPR Pilot – Lessons Learned

       Overall, all pilot departments agreed that the concise RPP and DPR pilot projects were a success, wherein senior management of the pilot departments were engaged and pleased with the end product produced; Increased utility and relevance of the RPP & DPR within departments, reports are now more streamlined, meaningful, and strategic documents; Clear presentation of financial information; Built linkages between risks and expected results; Added efficiencies; On time, on schedule, and on budget; and Opportunity to tell a coherent departmental reporting story.

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Good Practices – Parks Canada RPP

2008-09 Allocation of Funding by Program Activity

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2009-10 RPP Guidelines RPP Planning Summary Table – Section I

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Good Practice – ACOA 2008-09 RPP

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Good Practices - Parks Canada 2008-09 RPP

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2009-10 RPP Guidelines

Reporting performance indicators and targets for PAs in Section II

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Good Practices - ACOA 2008-09 RPP

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Good Practices - Parks Canada 2008-09 RPP

From pg. 20 From pg. 22 16

Good Practices – Performance Reporting

• For good practices in Departmental Performance reporting, see the latest version of

Performance Reporting Good Practices Handbook available online at:

http://www.tbs-sct.gc.ca/dpr-rmr/2007 2008/index-eng.asp

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Improved Reporting – Next Steps

• • • Full roll-out of concise reporting format across all departments for 2009-10 RPPs and 2008-09 DPRs.

To assist departments, TBS has produced a suite of products: • Guide to the preparation of Part III of the Estimates for Reports Tabled in Parliament in 2009, Detailed Instructions for the RPP (and DPR – to be updated), • • • • • Step-by-Step PDF Technical Guide, Revised concise RPP mock-up (version 2.0), Revised concise DPR mock-up (version 2.0), Good Practices Handbook.

Community of practice among pilot departments.

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2008-2009 Departmental Performance Report Best Practices and Lessons Learned

Presentation to the Financial Management Institute Office of the Chief Financial Officer Loretta L Scott Director, Planning and Reporting Division November 25, 2008 20

• • • • • •

Table of Contents

Context PHAC Processes Challenges and Solutions Efficiencies Critical Success Factors – – Senior Management TBS – Innovation – Excellence Best Practices and Lessons Learned 21

Context …

• • • • Agency was established in 2004 Approximate total number of staff: 2400 2006-2007 – 2007-2008 PAA restructuring RPP contained 357+ commitments 22

• • • • • • • • • • • •

PHAC Processes …

Call letter Solicit planner input though use of templates Draft review with TBS and business case to enter Informal Pilot Section II focused on current Fiscal Year; Section V captured the 3-year horizon information Teleconference calls and interviews Draft DPR and circulate for planner review (several times) vs limited number August weekend for challenge process Circulate to Executive Committee for review and commentary Executive Committee approval Chief Public Health Officer approval Minister of Health debrief Minister of Health approval 23

Challenges and Solutions …

Challenges 357+ Commitments Change Management Public Accountability Solutions • Ongoing vs Improvement Agenda • Vignettes – PHAC Facts • Priorities • Timing for Entry to Informal Pilot Opportunity • Senior Management • Planning and Reporting Working Group • TBS • Accountability Table to track all commitments 24

Challenges and Solutions …

Challenges TBS Guidelines Redundancies Solutions • Flexibility and Creativity • PHAC MAF – DPR Checklist (Annex A) • Previous Guidelines • Strict adherence to Section II and complementary input into Section V for intentional redundancies Evaluations • Audits, and other Independent Lines of Evidence 25

• • • • •

Efficiencies …

DPR size / volume Clear and focussed priorities and plans – Expected Results and resources for Strategic Outcome and Program Activities – Hyperlinks to support details Number of drafts for review by planning community reduced Lessons Learned - one summary section at the end of Section II for conciseness – Less verbiage Financial efficiencies through highlights – – Brief summaries/descriptions Graphs, bar charts 26

Critical Success Factors …

• • • • Senior Management Support TBS Support Innovation Excellence 27

Senior Management Support …

• • • • Support, support, and more support … for change, and for excellence Creative advice – Vignettes Communications on

PHAC Facts

Timely turn around advice and guidance by Executive Challenge process enabled by concise reporting for Legal, EC, Audit 28

TBS Support …

• • • • • Provided the opportunity Provided a challenge function Delivered timely review, advice and guidance Provided encouragement Helped complement PHAC objective of achieving excellence 29

Innovative Approaches …

• • • • PHAC Facts – Concise facts to address evaluation, audits, …independent lines of evidence, regional input Accountability Table – Tracks 357+ PHAC MAF Rating and DPR Guidelines Checklist – Evaluation Checklist Financial Highlights – – level – – Reader Attention simplify the story – Based on detailed work at organizational “Briefing Note” form of methodology to Quality underlies format which supports public reporting principles Retention

Liabilities by Type

5% 18% 76% Accounts payable and accrued liabilities Vacation pay and compensatory leave Employee severance benefits Other Liabilities 1% 30

• • • • • • •

Excellence …

Tell the story in short, simple easy to read manner – Financials too!

Challenge Agency planners and Corporate Planning and Reporting Division Team to achieve excellence – go beyond status quo re MAF Audit Committee challenge and advice Evaluation advice Risk Management advice, guidance Executive advice, review and approval Planning and Reporting Division challenge 31

Best Practices and Lessons Learned …

• • • • • • PHAC MAF-DPR Checklist – “Hold the feet to the fire” Evaluations – Not done at Program Activity level, work is long term and ongoing thus impacting evaluation quality, highlighting the need for other sources of evidence Critical Few Lessons – in one section Summarize lessons learned Weekend Challenge through Cross Review - Road to excellence by identifying and addressing gaps, redundancies, and fine tuning Section II vs Section V usage Shortened calendar timelines 32

Best Practices and Lessons Learned - The ABCs

• • • • • Accentuate the positive aspects of the experience Build rapport and relationships Challenge thinking and concepts Discuss issues Engage, and embrace the opportunity 33

Contact Information

Loretta L. Scott Director, Planning and Reporting Planning and Reporting Divisions Office of the Chief Financial Officer Public Health Agency of Canada [email protected] 613-957-2457 (W); 613-219-4214 (C) Planning Team: Guus Saaltink – Daniel Hogan – [email protected]

[email protected]

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Streamlined RPP Pilot Parks Canada’s Experience

FMI Conference November 25, 2008

Streamlined RPP- Overall Comments

Pilot was successful in meeting its primary objective: support from Minister’s Office Streamlined RPP = primary audience is now clearly identified Streamlined RPP now clearly corresponds to CEO’s accountability to Parliament Streamlined RPP = less efforts spent on process and more on strategic planning 36

Streamlined RPP- Section I

Funding Profile: better integration of financial and non-financial information 37

Streamlined RPP- Section I

Priorities: reinforced the importance of priority setting as part of corporate planning exercise 38

Streamlined RPP- Section I

• Risks and Mitigation Strategies: increased attention was paid to Integrated Risk Management 39

Streamlined RPP- Section II

Structure of the RPP makes it easier for managers to understand the purpose of MRRS related work and strengthens linkages between planning and reporting 40

Streamlined RPP- Staff Comments

RPP is easier to read Clearer corporate direction It makes our life easier (re: reduced workload) 41

Industry Canada’s Success with the Concise DPR Pilot

FMI Conference November 2008

Purpose

 Present the improvements to Industry Canada’s 2007-2008 DPR 43

TBS DPR Pilot

 Participate with the following departments – ACOA – – INAC TBS  Produce a more concise DPR: – 30 pages maximum – Move to a layered approach (more online information) 44

Initial DPR Pilot Benefits

 Gave the priorities that we had earlier identified more weight  Forced the department to tell a more concise performance story  Created a more user friendly document  New opportunity to showcase financial information and linking resources to results 45

Industry Canada’s Concise DPR Action Plan: Four Priorities

Priority: Balanced Reporting – Lessons Learned Issue

 Traditionally DPRs report that everything went well. Balanced reporting increases credibility and transparency by requiring DPRs to report where activities did not achieve expected results.

Mitigation

  Briefed key stakeholders within Industry Canada (Communications Branch, DMO, and MINO) to make them aware our goal was to bring a more balanced draft forward earlier in the process.

Held a one-day session with our network planners to discuss this issue (invited TBS officials to speak on this subject).

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IC’s Concise DPR Action Plan: Four Priorities

Balanced Reporting – Lessons Learned Result

Lesson

Lessons Learned

Industry Canada carries out its mandate in a fast-paced environment of continually shifting priorities. The department has responded to this environment by accelerating the implementation of some initiatives to meet tight deadlines and has learned that any failure to consult targeted stakeholders during accelerated initiatives results in the need to make modifications at a later date to ensure those stakeholders are well served. This is particularly true in the development of marketplace frameworks.

In response, Industry Canada has renewed its commitment to using a measured and focussed approach to ensure that all stakeholder views are brought to the table prior to implementation. By following through on this commitment, Industry Canada will improve stakeholder satisfaction and reduce the number of modifications that are required.

Clearly titled Lessons Learned “Hot Box” makes the section stand out 47

IC’s Concise DPR Action Plan: Four Priorities

Priority: Balanced Reporting – Trend Analysis Issue

  In the 2007-08 RPP Industry Canada did not set targets against performance indicators.

Need to find a way to tell our performance story.

Mitigation

 Used the results reported in the 2006-07 DPR as a baseline to measure our performance in 2007-08.

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IC’s Concise DPR Action Plan: Four Priorities

Balanced Reporting – Trend Analysis Result Indicator

Investment in machinery and equipment as a proportion of GDP Use of ICTs Indicator information is centre stage following SO’s and PA’s

Results

Canada invested 7.47 percent of GDP in machinery and equipment in 2007.

[1]

Trend

No Change Business and government use of ICTs rose to 77.5 percent and 99.88 percent respectively in 2006.

[2] Improving Trend 49

IC’s Concise DPR Action Plan: Four Priorities

Priority: Spending Variances Issue

  In past DPRs the causes of significant differences in actual spending and planned spending were not discussed.

MPs cannot review DPRs to determine if the Department is budgeting correctly.

Mitigation

 Communicated that “telling an effective performance story” also meant discussing variances in spending.

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IC’s Concise DPR Action Plan: Four Priorities

Priority: Spending Variances

    This priority proved to be the most difficult to obtain.

Lead to some confusion as people did not know if they needed to account for every spending variance

(would be difficult to obtain a smaller document).

We determined, following consultation with TBS, that we should explain the significant or material variances. Question of reasonableness.

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IC’s Concise DPR Action Plan: Four Priorities

Spending Variances Result

Significant difference of $ 100M Discussion

Financial Resources ($ millions) 2007 – 08 Planned Spending Total Authorities Actual Spending

68.6

180.2

$168.6

The variance between the planned and actual spending in 2007 –08 is attributed to a statutory payment of $108.4 million that was made in 2007 –08. It was a loan loss sharing program, in partnership with private sector financial institutions, that was wound down in 2007 –08 and a claim of $108.388 million was paid to the lender.

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IC’s Concise DPR Action Plan: Four Priorities

Priority: Referencing External Information (i.e. web links) Issue



2006-2007 DPR

contained 23 web links.

Mitigation

 Provide externally verifiable information (i.e. web link or footnote source) with each accomplishment made as applicable.

Result

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2007-2008 DPR:

over 100 web links 53

IC’s Concise DPR - Challenges

30 page maximum document with a layered approach Issue

  Industry Canada has fifteen (15) program activities – cannot easily craft a performance story

2006-07 DPR

was 92 pages in length

Mitigation

  Allow for only ¼ page for each program activity – 2007-2008 DPR is 40 pages. TBS recognized that larger departments may require more than the 30 pages allowed Create separate online web pages for each program activity (allowed the department to tell a more fulsome performance story) 54

IC’s Concise DPR - Challenges

Linking Resources to Results and showcasing financial information Issue

 How to link resources to results while shortening the number of financial tables 

2006-07 DPR

had 20 pages of financial and non-financial tables as well as information online

Mitigation

 Briefed key stakeholders within Industry Canada (Communications Branch, DMO, and MINO) to make them aware our goal was to  bring a more balanced draft forward earlier in the process More graphical representation of resources 55

Graphical Representation of Financial Information

   New Expenditure Profile in Section 1 of the DPR which includes two financial tables which were moved from the back of the document:  Planned and Actual Spending Table  Voted and Statutory Items Table Section 3 is now a Financial Highlights Section  More like an Annual Report  3 pages in length with graphical representation of Industry Canada’s liabilities, assets and expenses Section 2 has graphical representations of spending distributions by Strategic Outcome 56

Key Factors To Success

    TBS involvement – timely review of our draft DPR documents ensured that our product was of top quality Senior management engagement (including DMO and MINO) – engaging senior management early in the process Internal collaborative approach with IC sectors and Resource Management Division Be Creative Spending graphs Trends vs Targets Wiki 57

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